Musk's xAI buys massive Memphis site to expand Colossus cluster

March 10, 2025 03:01 PM

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Elon Musk’s xAI is believed to have purchased a one-million-square-foot site for a new data centre to expand its presence in Memphis, Tennessee.

The Greater Memphis Chamber announced at the end of last week that the Musk-owned startup has purchased land to complement its existing Colossus supercomputer.

“This significant expansion by xAI reinforces Memphis’s position as a premier destination for technological innovation,” said Ted Townsend, president and CEO of the Greater Memphis Chamber.

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Having recently secured a deal with local authorities to expand X’s existing data centre in Atlanta, Musk has turned his sites on building out xAI’s home in Memphis.

Memphis houses xAI’s Colossus site, which features 100,000 Nvidia GPUs, a number that’s set to double — and could even reach more than one million GPUs, if local authorities are to be believed.

Musk and co. are looking to expand rapidly as the billionaire wants to compete with Microsoft-backed OpenAI.

The startup has already secured plans for an $80 million water recycling plant that will process up to 13 million gallons of wastewater daily to avoid drawing from the local aquifer.

The Greater Memphis Chamber touted xAI’s existing site for its Tesla Megapack, a large-scale rechargeable lithium-ion battery that provides the site with power, meaning it doesn’t have to draw from the grid.

However, environmental groups have claimed the site was operating gas turbines at the site without a permit, which would violate federal law.

CTC Property LLC, an xAI affiliate, reportedly filed for such permits with the Shelby County Department of Health in January — months after claims that it used such turbines surfaced from the Southern Environmental Law Centre.

Initial plans for the site were for it to use up to 150 MW of electricity, a figure Musk wants to double as the site continues to scale.

Brent Mayo, senior manager for site builds and Infrastructure at xAI, said: “xAI’s acquisition of this property ensures we’ll remain at the forefront of AI innovation, right here in Memphis.

"We’re committed to expanding alongside this community and doing what’s best for the city. As we transform this property and enhance our facility, we’ll bring more employment opportunities and economic growth to the area.”